Item 1.01 Entry into a Material Definitive Agreement.
On January 12, 2021, Hudson Executive Investment Corp. ("HEC") entered into an
Agreement and Plan of Merger (the "Merger Agreement") by and among HEC, Tailwind
Merger Sub I, Inc., a Delaware corporation and direct, wholly owned subsidiary
of HEC ("First Merger Sub"), Tailwind Merger Sub II, LLC, a Delaware limited
liability company and direct, wholly owned subsidiary of HEC ("Second Merger
Sub") and GROOP Internet Platform, Inc. (d/b/a Talkspace), a Delaware
corporation (the "Company" or "Talkspace").
Pursuant to the Merger Agreement, the parties thereto will enter into a business
combination transaction (the "Business Combination") by which, (i) First Merger
Sub will merge with and into the Company with the Company being the surviving
corporation in the merger (the "First Merger") and (ii) Second Merger Sub will
merge with and into the surviving corporation with Second Merger Sub being the
surviving entity in the merger (the "Second Merger" and, together with the First
Merger, being collectively referred to as the "Mergers" and, together with the
other transactions contemplated by the Merger Agreement, the "Transactions" and
the closing of the Transactions, the "Closing").
The proposed Business Combination is expected to be consummated after receipt of
the required approval by the stockholders of HEC and the satisfaction or waiver
of certain other conditions, as summarized below.
Merger Agreement
Closing Merger Consideration
The value of the aggregate consideration to be paid to the stockholders and
vested optionholders of the Company will be equal to $1,400,000,000, reduced by
certain deductions for the parties' transaction expenses and the value (the
"Sponsor Share Amount"), at $10.00 per share, of the shares of Class B common
stock, par value $0.0001 per share, of HEC held by HEC Sponsor LLC (the
"Sponsor") immediately prior to the consummation of the Transactions (the
"Merger Consideration").
As a result of the Mergers, among other things, all shares of common stock and
preferred stock of the Company and all vested options exercisable for common
stock of the Company, in each case, outstanding immediately prior to the
effective time of the First Merger, will be cancelled in exchange for the right
to receive, at the election of the holders thereof, a number of shares of common
stock, par value $0.0001 per share, of HEC ("HEC Common Stock") or a combination
of shares of HEC Common Stock and cash, in each case, as adjusted pursuant to
the Merger Agreement, which in the aggregate with the options to acquire common
stock of the Company to be assumed by HEC in exchange for options to acquire HEC
Common Stock, will equal to the Merger Consideration. The maximum amount of cash
(the "Closing Cash Consideration") that may be paid to pre-closing holders of
the Company's stock and vested options pursuant to the foregoing is equal to
(i) the amount of cash held by HEC in its trust account (after reduction for the
aggregate amount of cash payable in respect of any HEC stockholder redemptions),
plus (ii) the amounts received by HEC upon consummation of the PIPE Investment
and the transactions contemplated under the HEC Forward Purchase Agreement (each
as defined below), minus (iii) $250,000,000, minus (iv) the transaction expenses
of the parties to the Merger Agreement. The maximum number of shares of HEC
Common Stock that may be issued to pre-closing holders of the Company's stock
and options, including HEC Common Shares underlying any assumed options,
pursuant to the foregoing is equal to a number determined dividing (a) (i) the
Merger Consideration minus (ii) the Closing Cash Consideration, minus (iii) the
Sponsor Share Amount, minus (iv) the transaction expenses of the parties to the
Merger Agreement, by (b) $10.00.
Representations and Warranties
The Merger Agreement contains customary representations and warranties of the
parties thereto, which will terminate and be of no further force and effect as
of the Closing.
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Covenants
The Merger Agreement contains customary covenants of the parties, including,
among others, covenants providing for (i) the operation of the parties'
respective businesses prior to consummation of the Transactions, (ii) HEC and
the Company's efforts to satisfy conditions to consummation of the Transactions,
(iii) HEC and the Company to cease discussions regarding any alternative
transactions, (iv) HEC to prepare and file a registration statement on Form S-4
with the SEC and take certain other actions to obtain the requisite approval of
HEC's stockholders to vote in favor of certain matters (the "Acquiror
Stockholder Matters"), including the adoption of the Merger Agreement, approval
of the Transactions, amendment and restatement of HEC's certificate of
incorporation and certain other matters at a special meeting called therefor
(the "Special Meeting"), (v) the protection of, and access to, confidential
information of the parties and (vi) the parties' efforts to obtain necessary
approvals from governmental agencies.
Conditions to Closing
The consummation of the Transactions is subject to customary closing conditions
for special purpose acquisition companies, including, among others: (i) approval
by HEC's stockholders, (ii) the expiration or termination of the waiting period
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended,
(iii) no order, statute, rule or regulation enjoining or prohibiting the
consummation of the Transactions being in force, (iv) HEC having at least
$5,000,001 of net tangible assets as of the Closing, (v) receipt of approval for
listing on the Nasdaq Capital Market of the shares of HEC Common Stock to be
issued in connection with the Transactions and (vi) customary bringdown
conditions. Additionally, the obligations of the Company to consummate the
Transactions are also conditioned upon, among other conditions, the amount equal
to (i) the amount of cash held by HEC in its trust account (after reduction for
the aggregate amount of cash payable in respect of HEC stockholder redemptions),
plus (ii) the amounts received by HEC upon consummation of the PIPE Investment
and the transactions contemplated under the HEC Forward Purchase Agreement,
minus (iii) HEC's expenses (other than its transaction expenses incurred in
connection with the Transactions) incurred prior to the Closing being at least
$400,000,000 as of the Closing.
Termination
The Merger Agreement may be terminated at any time prior to the Closing (i) by
mutual written consent of HEC and the Company, (ii) by either HEC or the Company
(a) if the Transactions are not consummated on or before July 30, 2021, (b) if a
governmental entity shall have issued an order or taken any other action that is
final and nonappealable and permanently enjoins or prohibits the merger, (c) in
the event of certain uncured breaches by the other party, or (iii) by the
Company if, at the Special Meeting, the Transactions and the other Acquiror
Stockholder Matters shall fail to be approved by requisite holders of HEC's
outstanding shares.
Related Agreements
Registration Rights Agreement
The Merger Agreement contemplates that, at the Closing, HEC, Talkspace, the
. . .
Item 3.02 Unregistered Sales of Equity Securities.
The disclosure set forth above in Item 1.01 of this Current Report is
incorporated by reference herein. The shares of HEC Class A common stock to be
issued in connection with the Subscription Agreements will not be registered
under the Securities Act of 1933, as amended (the "Securities Act"), in reliance
on the exemption from registration provided by Section 4(a)(2) of the Securities
Act and/or Regulation D promulgated thereunder.
Item 7.01 Regulation FD Disclosure.
On January 13, 2021, HEC and the Company, issued a press release (the "Press
Release") announcing the Transactions. The Press Release is attached hereto as
Exhibit 99.1 and incorporated by reference herein.
Attached as Exhibit 99.2 and incorporated by reference herein is an investor
presentation dated January 2021, that will be used by HEC in meetings with
certain of its shareholders as well as other persons with respect to the
proposed Transactions, as described in this Current Report on Form 8-K.
Attached as Exhibit 99.3 and incorporated by reference herein is a presentation
dated January 13, 2021, that is presented by HEC at the 39th Annual J.P. Morgan
Health Care Conference with respect to the proposed Transactions, as described
in this Current Report on Form 8-K.
The information in this Item 7.01, including Exhibit 99.1, Exhibit 99.2 and
Exhibit 99.3, is furnished and shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or otherwise subject to liabilities under that section, and shall not be
deemed to be incorporated by reference into the filings of HEC under the
Securities Act or the Exchange Act, regardless of any general incorporation
language in such filings. This Current Report will not be deemed an admission as
to the materiality of any information of the information in this Item 7.01,
including Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3.
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Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
The Exhibit Index is incorporated by reference herein.
Additional Information and Where to Find It
This Current Report on Form 8-K relates to a proposed transaction between HEC
and Talkspace. This Current Report on Form 8-K does not constitute an offer to
sell or exchange, or the solicitation of an offer to buy or exchange, any
securities, nor shall there be any sale of securities in any jurisdiction in
which such offer, sale or exchange would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction. HEC intends to
file a registration statement on Form S-4 with the SEC, which will include a
document that serves as a prospectus and proxy statement of HEC, referred to as
a proxy statement/prospectus. A proxy statement/prospectus will be sent to all
HEC shareholders. HEC also will file other documents regarding the proposed
transaction with the SEC. Before making any voting decision, investors and
security holders of HEC are urged to read the registration statement and the
related proxy statement/prospectus (including all amendments and supplements
thereto) and all other relevant documents filed or that will be filed with the
SEC in connection with the proposed transaction as they become available because
they will contain important information about the proposed transaction.
Investors and security holders will be able to obtain free copies of the
registration statement, the proxy statement/prospectus and all other relevant
documents filed or that will be filed with the SEC by HEC through the website
maintained by the SEC at www.sec.gov.
The documents filed by HEC with the SEC also may be obtained free of charge at
HEC's website at http:// https://hudsoninvestcorp.com/investors or upon written
request to Hudson Executive Investment Corp., 570 Lexington Avenue, 35th Floor,
New York, NY 10022.
Participants in Solicitation
HEC and its directors and executive officers may be deemed to be participants in
the solicitation of proxies from HEC's shareholders in connection with the
proposed transaction. A list of the names of such directors and executive
officers and information regarding their interests in the business combination
will be contained in the proxy statement/prospectus when available. You may
obtain free copies of these documents as described in the preceding paragraph..
Forward-Looking Statements Legend
This Current Report on Form 8-K contains certain forward-looking statements
within the meaning of the federal securities laws with respect to the proposed
transaction between HEC and Talkspace, including statements regarding the
anticipated benefits of the transaction, the anticipated timing of the
transaction, the services offered by Talkspace and the markets in which it
operates, and future financial condition and performance of Talkspace and
expected financial impacts of the transaction (including future revenue, pro
forma enterprise value and cash balance), the satisfaction of closing conditions
to the transaction, the PIPE transaction, the level of redemptions of HEC's
public shareholders. These forward-looking statements generally are identified
by the words "believe," "project," "expect," "anticipate," "estimate," "intend,"
"strategy," "future," "opportunity," "plan," "may," "should," "will," "would,"
"will be," "will continue," "will likely result," and similar expressions.
Forward-looking statements are predictions, projections and other statements
about future events that are based on current expectations and assumptions and,
as a result, are subject to risks and uncertainties. Many factors could cause
actual future events to differ materially from the forward-looking statements in
this document, including but not limited to: (i) the risk that the transaction
may not be completed in a timely manner or at all, which may adversely affect
the price of HEC's securities, (ii) the risk that the transaction may not be
completed by HEC's business combination deadline and the potential failure to
obtain an extension of the business combination deadline if sought by HEC,
(iii) the failure to satisfy the conditions to the
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consummation of the transaction, including the approval of the merger agreement
by the shareholders of HEC, the satisfaction of the minimum trust account amount
following redemptions by HEC's public shareholders and the receipt of certain
governmental and regulatory approvals, (iv) the lack of a third party valuation
in determining whether or not to pursue the business combination, (v) the
occurrence of any event, change or other circumstance that could give rise to
the termination of the merger agreement, (vi) the effect of the announcement or
pendency of the transaction on Talkspace business relationships, performance,
and business generally, (vii) risks that the proposed transaction disrupts
current plans and operations of Talkspace, (viii) the outcome of any legal
proceedings that may be instituted against Talkspace or against HEC related to
the merger agreement or the proposed transaction, (ix) the ability to maintain
the listing of HEC's securities on The Nasdaq Stock Market, (x) the price of
HEC's securities may be volatile due to a variety of factors, including changes
in the competitive and highly regulated industries in which HEC plans to
operate, variations in performance across competitors, changes in laws and
regulations affecting HEC's business and changes in the combined capital
structure, (xi) the ability to implement business plans, forecasts, and other
expectations after the completion of the proposed business combination, and
identify and realize additional opportunities, and (xii) the risk of downturns
in the highly competitive telehealth and teletherapy markets. The foregoing list
of factors is not exhaustive. You should carefully consider the foregoing
factors and the other risks and uncertainties described in the "Risk Factors"
section of HEC's registration statement on Form S-4 discussed above and other
documents filed by HEC from time to time with the SEC. These filings identify
and address other important risks and uncertainties that could cause actual
events and results to differ materially from those contained in the
forward-looking statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and HEC and Talkspace assume no obligation and do
not intend to update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise. Neither HEC nor
Talkspace gives any assurance that either HEC or Talkspace will achieve its
expectations.
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